Online billing enables users to create automated invoices and pay them electronically. It does not require the use of paper processes. This method makes it easy for customers to receive invoices in an online format, via e-mail, or on the supplier portal.
This process is quick and efficient for both customers and suppliers. Thanks to the invoice platform, the client can access copies of their electronic invoices and update their information. In today’s finances, you can’t do without electronic billing.
Electronic billing involves the operation of several systems – it’s a billing system, a banking system, and a customer’s bank bill payment system. Such billing is useful for organizations that systematically send invoices to customers.
Features of the Online Billing System
An online billing system is a computer system that helps create and deliver invoices and accept customer payments. Usually, the invoice flow algorithm is as follows:
- Aggregation of customer payment data in the billing system.
- Generation of the client’s account in the billing system.
- Transferring billing to the electronic billing system.
- Collecting and sending an invoice to a customer online.
- Receiving an email from the client with a notification of a new invoice.
There are two types of sales invoicing software that are used for electronic billing: a direct billing system and an aggregator bank system.
For example, most utility companies enable their customers to go to their service site, view and pay their bills. This is an example of direct electronic billing by a biller.
Some bills can be integrated into the bank’s bill payment system. So users can go to a bank’s website and pay multiple billers through the same interface. This is an example of aggregator banks.
Online billing software has many features in common and works the same way. Basic software enables you to send invoices and receive payments from customers.
Billing payment software automates the stages of the electronic invoicing process for the supplier and the buyer. Invoices are delivered electronically. Once the invoice is processed and approved, an electronic transfer is sent to the recipient. The automated billing software has electronic notifications of status in the site system, and can also send notifications to an email address.
Advantages of Online Billing
Online billing has many advantages, which only add to its popularity and relevance:
- fewer errors – customers will have fewer lost documents, and there will be no duplicates or errors since manual invoicing by the supplier is not required;
- time-saving for the recipient and payer – invoicing management software in the automation system automatically generates notifications of payment status;
- responsiveness – electronic invoicing reduces payment processing time;
- quick collection of receivables – electronic billing speeds up the collection time of receivables;
- timely invoice approval for early payment discounts – when invoices are quickly incorporated into the accounts payable system, customers can get more early payment discounts to save money;
- employees can focus on strategic activities – reducing manual labor for monotonous tasks enables employees to engage in more strategic tasks, and moving from paper invoices to electronic invoices, creates better organization;
- providing a system-integrated recording system – modern billing software solutions enable digital invoices for both payer and payee.
The benefits of electronic invoicing are optimized with an additional automation and payment system, as well as integration with accounting software.
Tips for Choosing Electronic Billing Software
There are many electronic billing programs available today. To choose the right invoice software for small businesses, you need to understand your needs. It can be software that integrates with another program or just a platform for creating and tracking invoices. Also, a lot depends on the industry because different industries have different needs.
It is important to choose such free software for invoice generation that will easily interact with other software in the organization for a smooth flow of data.
PandaDoc software also comes to the rescue of many businesses. This is a modern platform that enables you to create different types of documents and share, sign, and edit them. There are plenty of ready-made templates that assist users in doing everything quickly and correctly. Now you can use this platform to sign a contract or agreement. Thanks to electronic signatures, everything has become much easier.
This program is popular today due to its simple interface and many features. Many organizations have this assistant on their computers.